The U.S. Supreme Court has declined a petition from plaintiffs to review the rejection of an appeal of an ESOP claim brought against KeyCorp and its fiduciaries. 

The plaintiffs, participants in KeyCorp's employer stock option plan, allege that the Cleveland-based bank breached its fiduciary obligation to provide prudent investments by continuing to offer bank stock when fiduciaries knew it was overvalued. 

KeyCorp had extensive sub-prime mortgage exposure. The plaintiffs claimed the bank knew its balance sheet was exposed to default risks in light of the downturn in real estate that precipitated the financial crisis. 

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.